A minority of private-sector employees has access to defined benefit plans, but good news— according to the Bureau of Labor Statistics (BLS), the percentage that do is holding steady.
The BLS in “Characteristics of Defined Benefit Retirement Plans in 2022” says that 15% of private-sector employees had access to a DB plan in March of last year. But while that number is low, it is no worse than the most recent previous year for which that data is available, 2020.
Drilling down, the BLS reports that in March 2022, of the 15% of private-sector employees whose employers offered a DB plan:
- 11% participated in it; and
- 37% of those who participated in a DB plan were participating in one that was open to new employees.
The BLS also suggests that participation in DB plans that were open to new employees was higher among small private-sector employers than large ones. To wit: A strong majority of participants in such plans offered by employers with fewer than 100 employees took part—57% of employers with 50 or fewer employees and 75% of employers with 50-99. But just 27% of participants in such plans offered by employers with 500 or more employees took part.
Further, in March 2022, of private industry employees who participated in DB plans, 92% worked for single employers with 100 employees or more.
Also in 2020, says the BLS, 15% of private-sector employees had access to DB plans. Twelve percent had access to both DB and DC plans, and 3% had access to a DB plan only.
- Log in to post comments